Coffee Futures Market News and Commentary
Mar arabica coffee (KCH20) on Thursday closed up +5.30 (+4.78%), and Jan ICE robusta coffee (DFF0) closed up +16 (+1.15%).
Mar arabica coffee on Thursday rallied sharply to a 4-month high and nearest-futures Dec coffee surged to a 1-year high on the outlook for smaller output and exports from Brazil. The USDA's Foreign Agricultural Service (FAS) on Thursday said Brazil 2019/20 coffee production may slide -10.5% y/y to 58 mln bags from 64.8 mln bags in 2018/19. The USDA's FAS also forecast that Brazil 2019/20 coffee exports will slide -14.7% y/y to 35.32 million bags.
Robusta coffee found support on Wednesday's comment from Vietnam's Quang Minh Coffee Trading Group that low prices are discouraging Vietnam's coffee farmers from selling their beans. Vietnam is the world's largest producer of robusta coffee.
Current arabica coffee supplies continue to decline, which is also providing support to coffee prices, after ICE-monitored arabica coffee inventories fell to a... Read more